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Guide to Investing for a Better Future for Your Children

13 July 2017 No Comment

Parents usually consider starting college funds for their children so that they can get a higher education without amassing major debts. The only problem with that is that some kids don’t have any interest in going to college. Instead, they might want to travel the world after graduating high school or even have businesses that they want to launch. Depending on the type of investments you make for your children as they grow, you could have a hard time reallocating their college funds for other purposes. Moms and dads who start a real estate investment trust for their kids have more wiggle room, both when they set up these trusts and when they want to control how much their children withdraw. You can have a real estate trust that your children eventually manage themselves, as well as have the ability to fund your children’s future endeavors, without having to take away from your retirement fund or stop going on family vacations.

Why Choose Real Estate as an Investment Vehicle?

Many people buy real estate as an investment tool, but they generally buy property so that they have a place to live. House flipping is still popular, but there are few who are willing to give up their day jobs to start putting all of their time and energy into the volatile real estate market. With a little research, you will learn that property can be purchased at sheriff’s sales for as little as a few hundred dollars. Invest a little more money can you can have a rental property available to keep collecting on until you want to sell it. Take those steps, repeat them and create a real estate investment trust for future generations and your family will never struggle to have a stable income.

How Difficult Is It to Establish A Trust?

You can create a company by coming up with a name, incorporating it within your state, and paying the initial fees. Creating a trust is similar, only you will need to hire a few different types of professionals to ensure that your money stays safe and is available to the beneficiary. The other good news about initiating a trust is that you don’t need to take a hands-off approach. If you feel that your child won’t be responsible enough for unsupervised financial decisions until he or she is much older, you can set limits on the amount of money that can be withdrawn or name an executor who provides your child with advice.

What Can Trusts Be Used To Fund?

Setup a real estate investment trust so that your child’s living expenses are covered as he or she enters adulthood. The funds don’t ever have to be exhausted and you can keep making investments that will help to replenish all funds that have been spent. If you child decides to open a restaurant, you can make adjustments to the trust so that a larger amount can be withdrawn as well. Unlike a regular bank account, someone with authority will need to approve withdrawals and you can even make it so that a detailed expense report is required to be drawn up.

Provide Your Child with a Guaranteed Safety Net

If you have made good decisions during your lifetime, you may be prepared to leave your child with real estate, jewelry, cars, cash, and even a stock portfolio at the time of your passing. When your child inherits these things, he or she will need to maintain them and make the decision to sell or keep them. Sometimes, young people can make decisions that aren’t well thought out and run through an inheritance quickly, amassing more debt than they started with and feeling regretful in the end. The establishment of a real estate investment trust helps to provide young adults with guidance and boundaries so that they feel safer about their financial futures.

Children grow fast and their needs will only increase as they get bigger. Instead of putting off taking a trip to Disneyland until your kids are too big to truly appreciate it, consider getting into real estate investment. Not only will your children pick up on what you are doing to secure their future while still enabling them to enjoy their childhoods, they will also appreciate that you are helping them to understand finances. So don’t think that taking family vacations is an option and start preparing to spend more time with your children when school lets out, winter rolls around, or you just want to take a weekend to have fun with your family.

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